There is one simple trick you need to boost your wealth by tens of thousands of pounds – and it will only take you around half an hour a week.
Having financial confidence is the key to boosting your total wealth by an average of £86,000, regardless of how much you earn, a study for Money Mail and This is Money reveals.
And building up your confidence is easier and less time-consuming than you think – even if you are starting from scratch.
Investing and savings app Moneybox has measured the nation’s financial confidence across four key categories – savings, investments, retirement and managing personal finances – in its second Financial Confidence Index.
The study reveals that 66 pc of more than 4,000 adults surveyed are confident with their money while 30 pc are less reassured. But what is striking is the gigantic chasm in the wealth of those who are confident and those who are not – around £86,000 on average.
Take our quiz to see how financially confident you are – and read the experts’ tips that could help you boost yours and ultimately grow your wealth.
‘Financial confidence is less of that nagging doubt and more confidence you are making the right decisions’ says Brian Byrnes of savings app Moneybox
Why is confidence important?
Financial confidence is different for everyone. For you, perhaps, it means you can choose the best savings accounts for your goals or that you are confident that you will clear off your debt because of a payment plan you have put in place.
But Brian Byrnes, head of personal finance at Moneybox, says: ‘We all have this nagging doubt about money. You may think ‘Are my savings in the right place?’ or ‘What do I do about my pension?’. Financial confidence is less of that nagging doubt and more confidence you are making the right decisions. You’ll be more likely to take proactive and positive steps.’
Poor levels of confidence across savings, investing, retirement and money management can drastically hit your wealth, the Moneybox report shows.
In fact, individuals confident with handling their money have an average net worth of £338,000 compared to just £252,000 for those who are not confident. And that’s regardless of income.
This is because if you’re confident with your money and understand how financial products work, you’re more likely to plan and make your cash work hard for you. But if you are not confident, you may be reluctant to use valuable savings tools such as a pension or a stocks and shares individual savings account (Isa).
Some 44 pc of those who are very financially confident have investments compared to just 15 pc among those who aren’t confident at all. Those who are confident managing their money also have more invested compared to those who aren’t – £111,702 compared to £27,957, the report shows.
But if you are not confident enough to invest, this may dent your wealth because investing your money is likely to generate higher returns over the long term compared with keeping it in cash.
It is worth noting, though, that investments are riskier and should only be held if you don’t need access to your money in the next few years.
Ayesha Ofori, former wealth adviser at Goldman Sachs and now founder of female investment platform Propelle, says investing is the ‘biggest lever’ to growing your wealth. But she also says pensions are a big way to build a nest egg – so it’s important to be confident with retirement planning. ‘Most people have no idea how pensions work,’ she says.
‘Because they don’t understand how they work, they may not put extra money in and make it work harder for them.’
Are people more confident in 2025?
Households are more confident with their money than they were last year, Moneybox says. Confidence increased across the four key metrics measured by the platform.
Last year, 79 pc of people were confident about their savings habits. This has surged to 84 pc this year, while 83 pc now say they can manage their finances overall, up from 79 pc in 2024.
But the figures take a dive when it comes to more complex money matters. Just 39 pc of those surveyed are confident about investing, although this is up from 33 pc in 2024.
The Moneybox study reveals that 66pc of more than 4,000 adults surveyed are confident with their cash
It’s similar for planning for later life. While more people are confident in a comfortable retirement than last year – 57 pc versus 46 pc – it’s still only a little more than half of savers.
But this year, financial confidence has a bigger impact on your wealth, too. While the financially confident had £67,000 more than the financially unconfident in 2024, this year that gap is £86,000.
How confident is your area?
Belfast is this year’s winning city, with 74 pc of residents saying they are confident managing their finances, says Moneybox.
The city scores particularly highly for confidence for retirement, with more than seven in ten residents saying they have conviction in their later-life plans. When it comes to savings, 82 pc manage their cash with ease while for investing it’s 57 pc of residents. Some 86 pc manage their personal finances with confidence.
Two financial habits that are more common in Belfast than any other city are proactively seeking financial advice from any source and making specific plans to achieve financial goals. Confident Belfast residents have a £193,000 net worth compared to £181,000 for those who aren’t confident.
Londoners rank second as 68 pc say they are financially confident. Those in the capital are most likely to research financial products to find the best ones for their own goals.
Mancunians also deem themselves financially savvy as 68 pc also say they have conviction in their money matters. At the other end of the scale, 37 pc of those living in Sheffield believe they lack financial confidence.
Some 61 pc aren’t happy managing investments while some 35 pc are not confident with their later-life plan. Those who manage their money with ease in Sheffield have a £375,000 net worth compared to just £317,000 for the financially unsure.
Bristol has a large proportion of nervous households, with 36 pc of its residents lacking confidence with their money.
Ayesha Ofori, former wealth adviser at Goldman Sachs and now founder of female investment platform Propelle, says investing is the ‘biggest lever’ to growing your wealth
30-minute trick to boost wealth
Like any other habit or skill such as learning a language or playing a sport, building financial confidence takes discipline and consistent work. But you can do this in as little as 30 minutes every week, Mr Byrnes says.
He says time spent managing your finances and learning about money is the most important thing to build your confidence and, ultimately, your wealth.
‘It all boils down to the time you dedicate to your personal finances. You’ll be surprised how quickly you improve without noticing if you are consistent.’
Tips to grow your confidence
Building your money confidence is as simple as understanding your financial situation, according to the report.
Mr Byrnes says: ‘Once you sit down, try to work out what your money is for. It could be budgeting or getting out of debt.
‘Over time, it may be saving or getting on the property ladder or even retirement.
‘Everything becomes easier once you know what these goals are. Write them down on paper and verbalise them to someone else.’
The report also found support in finding the right financial products is a key metric for boosting conviction in your money. After you’ve decided on your goals, start to look at financial products that will help get you there.
Having financial confidence is the key to boosting your total wealth by an average of £86,000, regardless of how much you earn, Money Mail can reveal
For example, if your main goal for your money is to get your foot on the first rung of the property ladder, then a lifetime Isa may be for you. If it’s building a sizeable nest egg for retirement, then pensions are likely to come in handy.
Log on to your bank account online every week or check your printed statements to keep track of your spending. ‘Also, put money into financial products such as a savings account at the start of each month so that you get into the habit,’ adds Mr Byrnes.
And if you’re just starting out? Getting to grips with confusing finance jargon and difficult terminology is invaluable when building confidence.
Write down any words you come across that you are confused by and spend your 30 minutes each week finding out what they mean, Mr Byrnes says.
Growing your understanding is vital, Ms Ofori says: ‘It’s a lack of knowledge that is a key driver of lack of confidence.’
She also says you can build this understanding – and therefore your confidence – by just making a start.
‘You can open an Isa with just £1. Once you start, you’ll get information and pick things up as you’re going. Just invest £1, £10 or £100 – whatever is a small amount of money for you. You will immediately start learning.’
l.evans@dailymail.co.uk
